Desoto Resources Ltd. (AU:DES)
ASX:DES
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Desoto Resources Ltd.
(Sydney:DES)
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Rating:44Neutral
Price Target:
AU$0.14
▲(0.71% Upside)
Action:ReiteratedDate:03/24/26
The score is primarily pressured by weak financial performance (widening losses and worsening cash burn), with only the low-debt balance sheet providing support. Technical signals also indicate a weak trend (below major moving averages with negative MACD). Valuation adds limited support because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Conservative balance sheet (very low debt)
The very low debt-to-equity (~0.8% in FY2025) gives Desoto structural financial flexibility, lowering insolvency risk and preserving capacity to fund exploration via equity or JV routes. A conservatively levered balance sheet supports multi-quarter project spending despite operating losses.
Negative Factors
Weak cash generation and worsening cash burn
Operating cash flow and free cash flow have been persistently negative and deteriorated in FY2025, indicating structural cash burn to fund exploration and operations. Continued negative cash generation forces reliance on external financing and constrains capital allocation for systematic value-driving work.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet (very low debt)
The very low debt-to-equity (~0.8% in FY2025) gives Desoto structural financial flexibility, lowering insolvency risk and preserving capacity to fund exploration via equity or JV routes. A conservatively levered balance sheet supports multi-quarter project spending despite operating losses.
Read all positive factors
Desoto Resources Ltd. (DES) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$41.52M
Dividend YieldN/A
Average Volume (3M)649.52K
Price to Earnings (P/E)―
Beta (1Y)-0.35
Revenue GrowthN/A
EPS Growth-43.68%
CountryAU
Employees7
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.02
Shares Outstanding276,785,580
10 Day Avg. Volume1,200,041
30 Day Avg. Volume649,518
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.09
Price to Sales (P/S)11495.81
P/FCF Ratio-3.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Desoto Resources Ltd. Business Overview & Revenue Model
Company Description
Desoto Resources Limited, a mineral exploration company, focuses on the acquisition and exploration of gold and lithium deposits in the Northern Territory. It holds 100% interest in the Pine Creek project that consists of six granted licenses cove...
How the Company Makes Money
null...
Desoto Resources Ltd. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25K | 1.25K | 1.06K | 0.00 | 0.00 |
| Gross Profit | -32.96K | 1.25K | -64.85K | -66.55K | -4.73K |
| EBITDA | -7.43M | -2.93M | -1.62M | -1.39M | -149.18K |
| Net Income | -7.42M | -2.91M | -1.69M | -1.46M | -154.61K |
Balance Sheet | |||||
| Total Assets | 22.34M | 14.09M | 9.55M | 10.60M | 1.22M |
| Cash, Cash Equivalents and Short-Term Investments | 12.73M | 6.24M | 5.66M | 8.66M | 881.15K |
| Total Debt | 87.78K | 100.87K | 157.35K | 213.54K | 270.30K |
| Total Liabilities | 462.95K | 890.78K | 511.54K | 450.94K | 353.83K |
| Stockholders Equity | 21.88M | 13.20M | 9.04M | 10.15M | 868.04K |
Cash Flow | |||||
| Free Cash Flow | -6.90M | -3.68M | -3.10M | -1.78M | -141.50K |
| Operating Cash Flow | -7.00M | -2.71M | -1.56M | -1.19M | -128.54K |
| Investing Cash Flow | -2.53M | -1.23M | 536.26K | -2.59M | -12.96K |
| Financing Cash Flow | 18.09M | 4.52M | 18.30K | 9.56M | 1.02M |
Desoto Resources Ltd. Technical Analysis
Negative
0.14
Price Trends
0.16
Negative
0.16
Negative
0.17
Negative
Market Momentum
>-0.01
Negative
48.68
Neutral
61.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DES, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DES.
Desoto Resources Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
45 Neutral | AU$47.50M | -9.83 | -5.17% | ― | ― | 39.22% | |
44 Neutral | AU$41.52M | -1.53 | -42.31% | ― | ― | -43.68% | |
44 Neutral | AU$29.25M | -7.00 | -8.97% | ― | ― | -727.17% | |
41 Neutral | AU$47.35M | -1.23 | 432.54% | ― | ― | 7.16% | |
41 Neutral | AU$78.69M | -7.36 | -2.83% | ― | ― | -268.97% | |
40 Underperform | AU$17.45M | -2.95 | -104.39% | ― | 90.14% | 52.54% |
* Basic Materials Sector Average
AU:DES
Desoto Resources Ltd.
0.15
0.06
66.67%
AU:POD
Podium Minerals Ltd.
0.05
0.03
108.70%
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Agrimin Limited
0.08
0.02
33.33%
AU:AW1
American West Metals Ltd.
0.05
<0.01
17.50%
AU:PHO
PhosCo Ltd
0.15
0.09
150.00%
AU:WAK
WA Kaolin Ltd.
0.03
-0.01
-28.57%
Desoto Resources Ltd. Corporate Events
Desoto Resources Expands Guinea Footprint Along Siguiri Gold Trend
Mar 11, 2026
Desoto Resources has expanded its Guinea portfolio by acquiring the Dalaban, Woussoubadou and Branama projects in southwest Siguiri, adding 242 square kilometres of ground along the Siguiri Gold Mineralisation Trend. These new assets sit within a ...
Desoto Resources Plans Share Placement to Boost Capital Base
Mar 11, 2026
Desoto Resources Limited has lodged an Appendix 3B with the ASX outlining a proposed placement of up to 1,702,741 new fully paid ordinary shares. The new securities, which are expected to be issued on 31 March 2026, will increase the company’...
DeSoto Resources Details Governance in Half-Year Report
Feb 23, 2026
DeSoto Resources Limited has released its half-year report for the period ended 31 December 2025, outlining its corporate structure and key governance roles, including its directors, company secretary, and key external advisers such as its auditor...
DeSoto Resources Highlights Expanding Exploration Footprint in Guinea’s Siguiri Basin
Feb 9, 2026
DeSoto Resources has outlined its strategy to build a commanding exploration position in Guinea’s Siguiri Basin, highlighting a growing pipeline of greenfields projects in a region it brands as highly prospective “elephant country.R...
Desoto Resources Plans Late-2026 Equity Placement on ASX
Feb 8, 2026
Desoto Resources Ltd., listed on the ASX under the ticker DES, has outlined plans to issue additional ordinary fully paid shares as part of its capital management strategy. The company continues to use equity placements as a mechanism to maintain ...
DeSoto Resources Expands Guinea Gold Portfolio as Exploration Accelerates in Siguiri Basin
Feb 8, 2026
DeSoto Resources has expanded its Guinea footprint by agreeing to acquire the Yarakoura, Doutila and Moussaya projects from local partner United Mining SARL, adding 290 square kilometres on the western flank of its Siguiri Basin focus area and con...
DeSoto Resources Expands Guinea Gold Strategy With Fortuna JV and Strong Quarter
Jan 27, 2026
DeSoto Resources has reported a busy December quarter marked by a new exploration alliance and joint venture framework with Fortuna Mining Corp in Guinea’s Siguiri Basin, under which Fortuna may sole-fund up to US$12.5 million over three yea...
DeSoto Resources Issues New Shares to Brokers Under Fee Arrangement
Dec 30, 2025
DeSoto Resources Limited has issued 2,561,125 fully paid ordinary shares to joint lead managers Canaccord Genuity (Australia) and Euroz Hartleys, who elected to receive half of their placement fees in new shares at the offer price, following share...
Desoto Resources Seeks ASX Quotation for 2.56 Million New Shares
Dec 30, 2025
Desoto Resources Limited has applied to have 2,561,125 new ordinary fully paid shares quoted on the Australian Securities Exchange (ASX) under its existing ticker DES. The application, lodged as an Appendix 2A on 30 December 2025, follows the prio...
DeSoto Shifts Focus to Guinea After Modest Northern Territory Assay Results
Dec 29, 2025
DeSoto Resources has reported assay results from ten reverse circulation and diamond drill holes totaling 4,388 metres at its Spectrum Project in the Northern Territory, confirming the presence of gold, copper and rare earth element mineralisation...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.